Key Takeaways
- A House in Multiple Occupation (HMO) is a property rented to three or more people from two or more separate households who share facilities such as a kitchen or bathroom.
- Mandatory HMO licensing applies nationally to properties occupied by five or more people from two or more households. No minimum number of storeys is required.
- Additional licensing schemes can extend the requirement to smaller HMOs (typically three or four occupants) and are operated by individual local councils. Always check with your local authority.
- Operating an unlicensed HMO is a criminal offence that can result in an unlimited fine, a civil penalty of up to £30,000 and a rent repayment order covering up to 12 months’ rent.
- HMO licences last up to five years. There is no automatic renewal, so landlords must reapply before the licence expires.
If you rent a property to multiple tenants from different households, there is a good chance you need an HMO licence. Many landlords are unaware of this until they receive a notice from their local council. By that point, the penalties can already be significant.
Operating an unlicensed HMO is not a minor administrative oversight. It’s a criminal offence, and councils have become increasingly active in enforcing licensing requirements. Getting this right before you let (or before your existing licence expires) is one of the most important compliance steps a landlord can take.
In this article, we explain what an HMO is, which properties need a licence, what landlords must do to obtain one and what happens if the rules are not followed. Our landlord and tenant solicitors at Osbourne Pinner can advise on compliance and represent landlords facing enforcement action.
What Is an HMO?
A House in Multiple Occupation (HMO) is a property rented to three or more people who form more than one household and share facilities such as a kitchen, bathroom or toilet. The definition is set out in the Housing Act 2004.
A household means a single person or members of the same family living together. So a property let to five friends, each renting their own room, would be an HMO. A property let to a single couple or family would not be, even if it has multiple occupants.
Common examples of HMOs include:
- Shared student houses
- Bedsits
- Shared professional accommodation
- Properties converted into self-contained flats where the conversion didn’t meet the required building regulations
What Types of HMO Licence Are There?
There are three types of property licensing relevant to landlords in England: mandatory HMO licensing, additional HMO licensing and selective licensing.
Mandatory HMO Licensing
Mandatory licensing applies to any HMO occupied by five or more people from two or more separate households. This applies nationally. Every local authority in England must operate mandatory licensing. Since October 2018, there’s no minimum storey requirement. Properties that previously escaped mandatory licensing because they were in smaller buildings now require a licence.
Additional Licensing
Local councils can operate additional licensing schemes that extend HMO licensing to smaller properties (typically those occupied by three or four people) which fall below the mandatory threshold. Additional licensing schemes do not require central government approval, and the number of councils operating them has grown significantly in recent years.
If you own a smaller HMO, you can’t assume you don’t need a licence. You need to check with your local council whether an additional licensing scheme is in force in your area.
Selective Licensing
Selective licensing schemes allow councils to require licences for all privately rented properties in a designated area. So, not just HMOs. These schemes are typically applied in areas with high rates of anti-social behaviour, significant deprivation or low housing demand. As of 2026, over 60 local authorities operate selective licensing schemes. Notable areas include parts of Liverpool, Nottingham, Salford, Waltham Forest and Newham.
If your property is in a selective licensing area, you may need a selective licence in addition to an HMO licence. Fees for selective licensing typically range from £350 to £900 per property for a five-year licence.
What Are the Requirements for an HMO Licence?
To obtain a mandatory or additional HMO licence, landlords must satisfy the local authority across several areas.
Fit and Proper Person
The landlord or the managing agent named on the licence must pass a fit and proper person test. The council will check for unspent criminal convictions relating to fraud, dishonesty, violence, drugs or sexual offences, as well as any previous breaches of landlord law, licence revocations or refusals. A poor track record with one council can affect applications elsewhere, as authorities increasingly share information.
Minimum Room Sizes
Properties must meet statutory minimum room size standards. For sleeping accommodation, the minimum floor area is 6.51 square metres for a single adult and 10.22 square metres for two adults sharing. Rooms used by children under 10 must be at least 4.64 square metres. Rooms below the minimum size can’t lawfully be used for sleeping.
Fire Safety
HMOs must have adequate fire safety measures in place. This typically includes interlinked smoke alarms on each floor, carbon monoxide detectors where applicable, fire doors to bedrooms and kitchens, and clear means of escape. The specific requirements depend on the size and layout of the property. A fire risk assessment is advisable for most HMOs.
Management Standards
The property must be managed in accordance with the council’s standards. This covers communal areas, waste disposal, maintenance of shared facilities and general property condition. The council may inspect the property before granting a licence and can impose conditions as part of the licence.
How to Apply for an HMO Licence
Applications are made to the local council in which the property is located. Most councils now accept online applications, though the process and supporting documentation required varies between authorities.
You’ll typically need to provide details of:
- The property and its layout
- The proposed maximum number of occupants
- Gas and electrical safety certificates
- Evidence of fire safety measures
- Details of the landlord and any managing agent
- The application fee
Licence fees for mandatory HMO licensing typically range from £1,000 to £2,000, with London councils often at the higher end. Some councils offer discounts for accredited landlords or prompt payment. Licences are granted for up to five years and must be renewed. Remember, there’s no automatic renewal.
What Happens if You Operate Without a Licence?
Operating a licensable HMO without a licence is a criminal offence under section 72 of the Housing Act 2004. The consequences can be severe:
- Unlimited fines via criminal prosecution
- Civil penalty notices of up to £30,000 per offence, issued without the need for a court conviction
- Rent repayment orders, requiring the landlord to repay up to 12 months’ rent to tenants or the local authority
- Interim management orders, allowing the council to take over management of the property
- A criminal record, which will affect future licence applications
Councils have become significantly more active in enforcement. Tenants are also increasingly aware of their right to apply for rent repayment orders, which they can do themselves through the First-tier Tribunal. Above all, ignorance of the licensing requirement is not a defence.
Can a Licence Be Refused or Revoked?
Yes. A council can refuse an application if the landlord doesn’t pass the fit and proper person test, if the property does not meet the required standards or if the council has concerns about the proposed management arrangements.
A licence can also be revoked after it has been granted if the landlord commits a serious breach of the licence conditions. The same is true if they’re convicted of a relevant offence or if the property falls below the required standards and the landlord fails to remedy the situation.
Landlords have the right to appeal decisions to refuse, revoke or impose conditions on a licence. Appeals are heard by the First-tier Tribunal. Crucially, legal advice before making an appeal is strongly recommended.
HMOs and the Renters’ Rights Act 2025
The Renters’ Rights Act 2025, which came into force on 1 May 2026, introduced a specific new ground for possession for HMO student tenancies. Ground 4A allows landlords to recover possession of a student HMO at the end of an academic year, with two months’ notice, provided the ground is available and the correct conditions are met.
HMO landlords should also note that all other provisions of the Renters’ Rights Act apply equally to HMOs, including the abolition of Section 21, the 12-month protected period and the new Section 13 rent increase rules.
Speak to a Landlord & Tenant Solicitor about HMO Licensing
HMO licensing is one of the areas where the gap between compliance and non-compliance carries real financial and legal risk. Whether you are setting up a new HMO, renewing a licence, dealing with a council investigation or facing enforcement action, getting proper legal advice early is the most effective way to protect your position.
Please note that this article is for informational purposes only and does not constitute legal advice. We always recommend speaking to a qualified solicitor for advice tailored to your specific circumstances.
At Osbourne Pinner, our landlord and tenant solicitors advise landlords on HMO licensing compliance, licence applications and appeals, and represent clients in enforcement proceedings. We can also advise on the impact of the Renters’ Rights Act on your HMO portfolio.
We offer a free 30-minute consultation to discuss your situation. You can speak with us via video call or visit our offices in Harrow, Canary Wharf, Piccadilly Circus or Manchester. To arrange your consultation, call 0203 983 5080, email [email protected] or complete the form below.
